The authors studied the pattern of converting cropland to forest and grassland in Yuanzhou district of Ningxia on northwest part of Loess Plateau. The Yuanzhou district is suffered from serious soil water erosion and is well known for poverty. In the study, the authors have conducted investigation through informal discussion, typical survey and random questionnaire; and have further analyzed the pattern of converting cropland to forest and grassland, as well as the present situation of putting the project into practice. There are still some problems resulted from selecting mode in project operation, and the countermeasures were proposed in the end.